Consulting firm KPMG has been engaged to carry out an independent cost review of TasTAFE, as the institute works to find $45 million in savings.
A tender document for the “TasTAFE Cost Review” shows the government is paying KPMG nearly $100,000.
TasTAFE announced in March it would find the savings over four years, with courses under review.
TasTAFE chief executive Norman Baker told staff at the time the organisation could no longer “be everything to everyone or operate everywhere”.
Opposition leader Josh Willie said the review would “send a shiver down the spine of many TasTAFE employees and students”.
“This cost review is a red flag for further cuts,” he said.
Willie said TasTAFE had already been “cut to the bone”, with courses and teachers gone.
He said course fees would rise next year, while the Australian Education Union (AEU) says fees for commercial courses have already gone up 30%.
AEU TAFE division president Tristan Sabol said the union had not been told about the review before the tender was awarded.
“Staff are very concerned about job losses and morale is already the lowest I’ve seen it in 22 years I’ve worked at TasTAFE,” he said.
He said staff were leaving and the cafeteria at the Campbell Street campus had closed because of a lack of students and staff.
Sabol said students would have to go to the mainland to train if more courses were cut.
Health Minister Bridget Archer, speaking at an unrelated event in Launceston, said an independent cost review was “something that we can welcome”.
“It is important that every dollar of taxpayer funds, in whatever area, is invested to support those essential services that Tasmanians need and rely on,” she said.
She accused Labor of “fearmongering” and said the government would keep investing in vocational training that matched the state’s skills needs.
Skills Minister Felix Ellis said in March that the government would “always ensure TasTAFE is fit for purpose”.
“We are increasing TasTAFE operational funding in coming years, following increases of $19 million over the past two years alone,” he said at the time.
“Like all government agencies, TasTAFE must operate within its allocated budget, as Tasmanians expect.”
